What Is Performance Appraisal and Its Purpose in HRM?

What Is Performance Appraisal and Its Purpose in HRM?

                            Performance in the industries is managed by merit rating and performance appraisal. The merit rating evaluates the different traits of the employee by comparing the qualitative factors. Such as motivation of the individual, physical and mental ability, Efficiency and effectiveness, etc. the performance appraisal evaluates the performance of an employee by quantitative factors such as the quantity of output and rejected output, the standard of work, etc. According to Flippo " Performance appraisal is a systematic, periodic and so far as humanly possible and impartial rating of employee's excellence in matters about his present job and to his potentialities for a better job."

                            Performance appraisal is possibly the management's most powerful tool for controlling the performance and productivity of human resources in the organization. Effectively used of the appraisal system can love the tremendous strategic potential for governing employee behavior and, in turn, organizations' direction through its dynamic links to selection, training, career path planning, and rewards systems. The main aims of performance appraisal are to improve the job performance and identify potentialities for other works, to help in proper placement of the workers after the completion of their training and probation, To identify the need and areas for further training of the employees, etc. When we think of performance in organizations, we think about the performance of employees in the organization.

                            Performance appraisal plays an important role, In the justification of personal activities such as layoffs, demotions, transfers, and discharges, etc. may be justified only if they are based on performance appraisal. When actions are taken because of the unsatisfactory performance of the employee, the action can only be justified based on the result of performance appraisal. The performance appraisal provides an incentive for improving performance. It serves to maintain a fair relationship among the workers. It creates psychological pressure on employees to improve their performance. Performance appraisal helps the employee in his self-evaluation. Every employee is anxious to know his performance on the job and his potentials for higher jobs to bring himself to the level of that position.

  • Methods used for effective performance appraisal:-
  • The employees should be made aware of the performance in terms of goals, targets, and behavior, etc. expected of them.
  • Performance appraisal reports should be examined meticulously before taking any positive or negative action.
  • Supervisors responsible for performance appraisal should be well trained in the art and science of performance appraisal to ensure uniformity, consistency, and reliability.
  • There should be the provision of appeals against appraisals to ensure the confidence of the employees and their unions. The employees should be allowed to express their feelings on the performance reports.
  • It should ensure that the appraisal system its self is job-related performance-based, uniform and non-variable, fair, just, and equitable, and that the appraisers are honest, rational, and objective in their approach, judgment, and behavioral orientation.
                            A well-organized performance appraisal program may help the management in determining whether an individual should be considered for promotion because the system not only appraises the worth of the employee on the present job but also evaluates his potentialities for a higher job.

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